Symbolic imageTreasuries head for worst week since 'liberation day' on Fed-hike bets
US Treasuries are set for their worst week since Trump's 'liberation day' after hotter inflation data and hawkish Fed remarks. Bitcoin fell below $70,000 on Friday.
The Financial Times reports that higher-than-expected inflation and hawkish remarks by Fed officials have stung investors who had bet the global bond rout was over. Bloomberg says the yield surge shattered those hopes and that US wholesale inflation reached its fastest pace since 2022. Reuters quotes Daly saying the Fed will likely need to raise rates as inflation worsens. The Wall Street Journal notes that the two-year yield stabilised on Friday, 13 November, but that upward pressure on yields remains.
Consumer prices beat forecasts
Handelsblatt reports that October core consumer prices rose 0.3% from September, beating expectations for the third month running, while headline inflation rose 0.4%. It expects the Fed to raise rates next month.
Bitcoin breaks below $70,000
On Friday Bitcoin fell below $70,000 for the first time since August, dropping by as much as 5.4% to $67,628, its lowest since 19 August. It recovered to around $69,000 in London trading; Handelsblatt also cites high oil prices and Nvidia's leadership change as burdens.
Japanese bonds fall, dollar firm
Bloomberg reports Japanese government bonds fell as the Treasury rout extended on Fed-hike bets. The Wall Street Journal reports the dollar is supported by hawkish Fed expectations.